What it costs to buy property in Saudi Arabia
Saudi Arabia is cheap to hold and front-loaded to buy. There is no annual property tax on an occupied home and no capital gains tax for individuals, but a 5% transaction tax, an agency fee and, for foreigners, a fee of up to 5% more. Here is the true all-in figure.
- روجِع من قبل
- مكتب أومنيا
- آخر مراجعة
- 13 يونيو 2026
- زمن القراءة
- 4 دقائق
لمحة سريعة
الأساسيات، قبل أن تقرأ.
The all-in figure swings on one question: who bears the transaction tax. We model both before you reserve.
- Transaction tax
- 5% RETT
- Non-Saudi fee
- Up to 5% more
- Agency
- 2.5% + 15% VAT
- Registration
- ~1%
- Annual property tax
- None on a home
- Capital gains tax
- None for individuals
- Vacant land
- White Land Fee
- All-in to buy
- ~4-9%
في هذه الصفحة
Cheap to hold, paid at purchase.
A low-friction market with one asterisk for foreign buyers, and one for vacant land.
Saudi Arabia is unusually light to own and concentrated to buy. There is no annual property tax on an occupied home and no capital gains tax for individuals. The cost sits in the transaction: a 5% transaction tax, an agency fee, registration, and, for a foreign buyer, a fee of up to 5% more. Two asterisks complete the picture. Foreign disposals can carry the additional fee, and vacant land, not a lived-in home, attracts the White Land Fee.
- The defining cost is the 5% Real Estate Transaction Tax, settled with ZATCA at transfer.
- A non-Saudi disposal can add up to 5% more, so the foreign transfer load reaches up to 10%.
- No annual property tax on a home and no individual capital gains tax: holding is light.
- The White Land Fee is a holding cost on vacant land, not on an occupied residence.
What you pay to buy.
The transfer costs, and who bears each.
| Item | Amount | Notes |
|---|---|---|
| Real Estate Transaction Tax | 5% | Seller's in law, often negotiated |
| Non-Saudi fee | Up to 5% | On a non-Saudi disposal |
| Agency | 2.5% + 15% VAT | Default, negotiable in writing |
| Registration and notary | ~1% | On transfer |
| First off-plan sale | RETT-exempt | On a developer's first sale |
A SAR 5m apartment.
The all-in figure turns on who bears the transaction tax.
| Item | Buyer bears RETT | Seller bears RETT |
|---|---|---|
| Transaction tax (5%) | SAR 250,000 | SAR 0 |
| Agency (2.5% + VAT) | SAR 143,750 | SAR 143,750 |
| Registration (~1%) | SAR 50,000 | SAR 50,000 |
| Buyer-side total | ~SAR 445,000 | ~SAR 195,000 |
| As % of price | ~8.9% | ~3.9% |
Have Omnia model the all-in cost on a specific address, including who bears the transaction tax.
What you pay to hold.
Almost nothing recurs on an occupied home. The exceptions are vacant land and the service charge.
Holding a lived-in home in the Kingdom costs little. There is no annual property tax and no individual capital gains tax. Two recurring costs are worth naming. The White Land Fee is an annual charge on undeveloped land of 5,000 square metres or more, overhauled in 2025 to tiered rates of up to 10%, and it can reach vacant built units too. It does not touch an occupied residence. And a managed or branded residence carries an annual service charge set by the operator, higher for branded stock, which buys the standard that protects the asset.
رؤية أومنيا
Saudi Arabia rewards the holder, not the trader. The cost is concentrated at the moment of purchase, and almost nothing recurs once the home is occupied.
مرجع
مصطلحات أساسية، معرّفة.
- RETT
- Real Estate Transaction Tax: 5% of the transaction value, or fair market value if higher. In law it falls on the seller, but its incidence is negotiated.
- Non-Saudi fee
- An additional fee of up to 5% that can apply on a non-Saudi disposal, taking the total transfer load to as much as 10%.
- White Land Fee
- An annual fee on undeveloped land, overhauled in 2025 to a tiered structure of up to 10%. It is a holding cost on vacant land, not on an occupied home.
- Service charge
- The annual charge set by the operator of a managed or branded residence. It is not a tax, and it is higher for branded stock.
أسئلة شائعة
إجابات، بعبارات واضحة.
What is the total cost of buying a property in Saudi Arabia?
For a buyer who bears the transaction tax and uses an agent, all-in friction is roughly 7 to 9 percent of price: the 5% RETT, agency at about 2.875% including VAT, and around 1% in registration. Where the seller absorbs the RETT by statute, buyer-side friction falls closer to 4%. Foreign buyers should add a non-Saudi fee of up to 5% on a disposal.
How much is the Real Estate Transaction Tax?
5% of the transaction value, or fair market value if higher, settled with ZATCA at transfer. It replaced VAT on most real estate. The state covers it on the first SAR 1m of a Saudi citizen’s first home, but that relief does not extend to foreign buyers.
Is there an annual property tax in Saudi Arabia?
There is no recurring annual property tax on an occupied home. The only land-related annual levy is the White Land Fee, which applies to vacant undeveloped land of 5,000 square metres or more, and to vacant built units, at tiered rates. A lived-in residence is outside it.
Is there capital gains tax when I sell?
No capital gains tax applies to an individual selling a personal-use residence. The 5% transaction tax is the levy at the point of sale. Property held as a business or company asset is treated differently and should be reviewed on its facts.
Do foreign buyers pay an extra fee?
They can. Under the 2026 ownership law a non-Saudi disposal can carry an additional fee of up to 5% on top of the 5% RETT, so the headline transfer load reaches up to 10%. The detailed mechanics were being finalised in the implementing regulations, so we confirm the current position per transaction.
هذا الدليل معلومات عامة، وليس مشورة استثمارية أو قانونية أو ضريبية. تتطوّر الأنظمة؛ والأرقام إرشادية وصحيحة في تاريخ آخر مراجعة. تحدّث مع مستشار أومنيا للحصول على إرشاد يناسب ظروفك.
أدلة ذات صلة.
- الإجراءات
How to buy property in Saudi Arabia
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Buying off-plan property in Jeddah and Riyadh
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مشاريع ذات صلة.
للبيع الآن
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فرص خاصة
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